Does education lead to wealth?
This particular study concludes that it's not education itself that directly leads to wealth. Rather, people who are wealthy already are more likely to have access to education and attain higher educational outcomes. Global models, on the other hand, paint a slightly different picture.
No surprise—people with more education often earn higher incomes and are unemployed less than those with less education. Those with higher incomes also tend to accumulate more wealth. Why? Research shows that well-educated people tend to make financial decisions that help build wealth.
According to 2022 data from the U.S. Bureau of Labor Statistics (BLS), there is a strong correlation between education and income. Overall, people 25 years and older earned a median annual income of $75,980. Individuals with a bachelor's degree or higher made a median income of $118,300.
Successful students are those who are willing to endure technical problems, reach out for help when needed, work every day in every classroom, and overcome adversity. While many Americans believe that a college education will lead them to success, the reality is that education is not the only way to succeed.
While academic education can lay a solid foundation for general knowledge and skills, it comes up short in giving us what we need to spend and save money wisely, invest it in the right opportunities and grow our personal wealth. As Kiyosaki says, “It doesn't prepare you for the real world if you want to be rich.”
Enhanced career opportunities
According to the Public Policy Institute of California (PPIC), college graduates are less likely to be unemployed and more likely to have full-time jobs. In 2021, an estimated 85.3% of those with a bachelor's degree were employed, compared to 74.3% with a high school diploma.
The Economic Benefits Of Education
Higher education can lead to better job opportunities and higher income. On average, a person with a bachelor's degree will make $765,000 more in their lifetime than someone with no degree.
College graduates earn a median income of $117,800. That's more than twice as much as high school graduates, who earn a median income of $53,000. A college degree can be a smart way to invest in yourself, because it opens up more job opportunities, helps you build your network, and makes you more marketable.
- School Principal.
- University or College Administrator.
- Professor.
- Speech Pathologist.
- Instructional Coordinator.
- Special Education Teacher.
- Librarian.
- High School Teacher.
Income and Resources
Conversely, people with less education are more likely to work in high-risk occupations with few benefits. Adults with more education tend to experience less economic hardship, attain greater job prestige and social rank, and enjoy greater access to resources that contribute to better health.
Are educated people more successful?
College graduates are half as likely to be unemployed as their peers who only have a high school degree. Typical earnings for bachelor's degree holders are $40,500 or 86 percent higher than those whose highest degree is a high school diploma. College graduates on average make $1.2 million more over their lifetime.
According to the US Bureau of Labor Statistics (BLS), you don't need a college degree to get a well-paying job. The BLS predicts that approximately 60 percent of new jobs between 2020 and 2030 will not require any college degree [1].
Completing primary education reduces the risk of dying by 13% compared to no education. Education matters at all ages. While there is a greater effect on longevity for younger people, the impact can also be felt when older people increase their education.
Making money without a degree is a possibility if you find a job or side gig that aligns with your skills and interests. There are many reasons you might want to start your career without earning a degree.
739 out of 2,473 billionaires do not have degrees.
Education tends to raise productivity and creativity, as well as stimulate entrepreneurship and technological breakthroughs. All of these factors lead to greater output and economic growth.
Examining changes in K–12 public school spending due to school finance reforms in 28 states, Jackson and his colleagues find strong ties between increased school spending and positive outcomes. Increased spending raises graduation rates and boosts adult income.
However, money can also create barriers to education, such as tuition fees, living expenses, and debt. Moreover, money can influence the quality of education that people receive, as some schools and universities may have more resources, facilities, and opportunities than others.
Schooling resources that cost money, including smaller class sizes, additional supports, early childhood programs and more competitive teacher compensation (permitting schools and districts to recruit and retain a higher-quality teacher workforce), are positively associated with student outcomes.
Educated people can substantially contribute to their families and society, therefore creating a stable and interesting community. People with one more year of schooling earn 10% more in many developing countries. These earnings, in turn, help to drive national economic growth.
Do most millionaires have an education?
It found that 88% of millionaires graduated from college, compared to 38% of the general population. In addition, 52% of millionaires had a master's or doctoral degree, compared to 13% of the general population. This isn't the only research to find a strong link between wealth and level of education.
Norway reported the highest total expenditures on education institutions as a percentage of GDP (6.6 percent), followed by Chile (6.5 percent), Israel (6.2 percent), Australia (6.1 percent), and the United Kingdom and the United States (both 6.0 percent).
the median earnings of master's or higher degree completers ($80,200) were 20 percent higher than the median earnings of bachelor's degree completers ($66,600); the median earnings of bachelor's degree completers were 35 percent higher than the median earnings of associate's degree completers ($49,500);
| Rank | Occupation | Typical Education |
|---|---|---|
| 1 | Anesthesiologists | Doctoral or professional degree |
| 1 | Cardiologists | Doctoral or professional degree |
| 1 | Dermatologists | Doctoral or professional degree |
Harvard University, with a $49.495 billion endowment as of FY2023, is the wealthiest university in the world. The National Association of College and University Business Officers (NACUBO) maintains information on endowments at U.S. higher education institutions by fiscal year (FY).
